Nigeria’s private sector activity continued its expansionary run in January 2026, with the Composite Purchasing Managers’ Index (PMI) rising to 55.7 points, marking the fourteenth consecutive month of growth, according to the latest PMI report released by the Central Bank of Nigeria (CBN).
The PMI reading, which remains well above the 50-point threshold that separates expansion from contraction, signals sustained improvement in aggregate economic activity across the industry, services, and agriculture sectors, the report showed.
According to the CBN, 31 of the 36 subsectors surveyed recorded expansion during the month, underscoring the broad-based nature of the recovery
Industry Leads Growth Momentum
The Industry Sector PMI stood at 56.0 points, reflecting sustained expansion in industrial output. Key drivers included improvements in production output (57.2 points), new orders (55.0 points), and employment levels (52.8 points), indicating stronger demand conditions and increased labour engagement.
Out of the 17 industrial subsectors surveyed, 14 recorded expansion, with Non-Metallic Mineral Products posting the strongest growth. Transportation Equipment was the only subsector to record a notable contraction, though its impact was marginal relative to overall sector performance.
Services Sector Maintains Steady Expansion
The Services Sector PMI came in at 54.5 points, extending its expansion streak to twelve consecutive months. Business activities, new orders, employment, and inventories all recorded growth, reflecting improving business conditions and increased operational activity.
The report noted that 12 of the 14 services subsectors expanded in January. Motion Pictures, Cinema, Sound Recording and Music Production recorded the highest expansion, while Real Estate, Rental and Leasing experienced the sharpest contraction during the period.
Agriculture Records 18th Month of Growth
The Agriculture Sector PMI remained firmly in expansionary territory at 54.2 points, marking its eighteenth consecutive month of growth. Expansion was recorded across all five agricultural subsectors surveyed, with Livestock showing the strongest performance.
Growth in general farming activities, new orders, employment, and raw materials inventory pointed to sustained momentum in agricultural output during the month.
Input Prices Moderate as Output Prices Decline
The report also indicated a moderation in input and output price pressures in January 2026. Input prices remained higher than output prices across the composite index and its subsectors, but output prices declined more sharply in the composite, services, and agriculture indices, suggesting easing inflationary pressures at the production level.
Supplier delivery times improved, with the index standing at 60.4 points, indicating faster delivery performance and improved supply chain efficiency.
Positive Outlook for 2026
Overall, the January 2026 PMI data point to a robust and resilient growth trajectory for Nigeria’s economy at the start of the year, supported by rising output, improving employment conditions, and broad-based sectoral expansion.
The CBN noted that the sustained expansion provides a positive outlook for economic activity in 2026, even as structural challenges and cost pressures persist across some segments of the economy
